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Ecological Compensation and Green Development Institutional Reform in the Yangtze River Economic Belt (YREB)

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Ecological Compensation and Green Development Institutional Reform in the Yangtze River Economic Belt (YREB) China Council for International Cooperation on Environment and Development Ecological Compensation and Green Development Institutional Reform in the Yangtze River Economic Belt (YREB) Research Report CCICED Special Policy Study (SPS) Team May 2019 SPS Team Members 1. Co-chairs Vice President of Asia Development Bank (ADB) Mr. WANG Jinnan, President of Chinese Academy of Environmental Planning (CAEP) and Academician of Chinese Academy of Engineering 2. Core Experts Mr. Mark TERCEK, President and CEO of The Nature Conservancy (TNC) Mr. Hans FRIEDERICH, Director General, International Network for Bamboo and Rattan (INBAR) Ms. Annette T. HUBER-LEE, Senior Scientist, Stockholm Environment Institute (SEI) Ms. Amy S. P. Leung, Director General, East Asia Department (EARD), ADB Mr. Qingfeng ZHANG, Director, Environment, Natural Resources & Agriculture Division, ADB Ms. LIU Guihuan, Director/Professor, CAEP Mr. WANG Dong, Director/Professor, CAEP Mr. CHANG Jiwen, Associate Director General/Professor, Development Research Center of the State Council Ms. SHI Yinghua, Director/Professor, Chinese Academy of Fiscal Science Ms. DU Qun, Professor, Wuhan University Mr. ZHOU Jianjun, Professor, Department of Hydraulic Engineering, Tsinghua University Mr. WANG Dianchang, Director/Professor, China Three Gorges Corporation Mr. YE Hong, Dean/ Professor, Sichuan Academy of Environmental Sciences Mr. CHEN Yihui, Deputy Dean/Professor, Yunnan Institute of Environmental Sciences Mr. XU Hao, Dean/ Professor, Guizhou Academy of Environmental Sciences 3. Special Advisors Mr. Brendan GILLESPIE, Former Head of Water, OECD Mr. Arthur HANSON, International Chief Advisor, CCICED 4. Coordinators Ms. LIU Guihuan, Director/Professor, CAEP 1 Mr. Au Shion YEE SPS International Coordinator and Water Resources Specialist, ADB Ms. Dongmei GUO, Environmental Specialist, ADB 5. Advisors Knut ALFSEN, Member, CCICED Chief Advisor Support Team; Former Director of Center for International Climate and Environmental Research, Oslo Ms. Xiaopeng PANG, Professor, Renmin University Ms. Veronica Mendizabal JOFFRE, Social Development Specialist (Gender and Development), ADB Ms. Suzanne ROBERTSON, Senior Natural Resources and Agriculture Specialist, ADB Mr. Pavit RAMACHANDRAN, Principal Environment Specialist, ADB Mr. Mingyuan FAN, Senior Water Resources Specialist, ADB Mr. Rabindra OSTI, Senior Water Specialist, ADB Ms. Maria Pia ANCORA, Climate Change Specialist, ADB Mr. Bie Tao, Director General, Department of laws, regulations and standards, MEE Mr. ZOU Shoumin, Director General, Department of Science, Technology and Finance, Ministry of Ecology and Environment, MEE Mr. HAO Xingguo, Deputy Director General, Department of Human Resources Management and Institutional Arrangement, MEE Mr. ZHANG Yujun, Deputy Director General, Department of Human Resources Management and Institutional Arrangement, MEE Mr. ZHANG Bo, Director General, Department of Water Environment Management, MEE Mr. MA Qiang, Deputy Director General, Deputy Director General, National Development and Reform Commission 6. Support Experts Ms. WEN Yihui, Associate Professor, CAEP Mr. LU Yuantang, Associate Professor, CAEP Ms. MA Ya, Associate Professor, CAEP Mr. SUN Hongliang, Associate Professor, CAEP Ms. JU Wenhui, Research Assistant, CAEP Mr. WU Ping, Associate Professor, Development Research Center of the State Council 2 Ms. SU Jingchun, Associate Professor, Chinese Academy of Fiscal Science Ms. ZHANG Man, Research Assistant, Department of Hydraulic Engineering, Tsinghua University Mr. LI Chong, Director/Professor, China Three Gorges Corporation Mr. ZANG Hongkuan, Research Assistant, CAEP Mr. LIU Xinmin, Associate Director General, Sichuan Academy of Environmental Sciences Ms. MENG Fanli, Director General/Professor, Guizhou Academy of Environmental Sciences Mr. ZHANG Xiaoyu, Senior engineer, Yunnan Institute of Environmental Sciences Mr. JIAO Yan, Research Assistant, Professor, Wuhan University Mr. QU Chao, Ph.D Candidate, Chinese Academy of Social Sciences Ms. XIE Jing, Research Assistant, CAEP Ms. ZHU Yuanyuan, Research Assistant, CAEP Ms. DING Yue, Intern, CAEP 3 Executive Summary As stretching over 6000 km, the Yangtze River Valley has a unique ecosystem, which has a precious ecosystem in China. The Yangtze River Economic Belt (hereinafter referred to as "YREB") covers 11 provinces or municipalities with a population and GDP accounting for over 40% of total amounts in China. It is the economic center in China with great vitality, and also an important support for the sustainable development of Chinese nation. It is of great significance to promote the YRBT to step a path of ecology priority and green development, and build it into a green demonstration belt with great influence throughout the country. With reference to the successful experiences in both domestic and international watershed management, this project is to study how to promote the green development of the whole Yangtze River basin, especially the upper reaches of the Yangtze River Basin through the innovative institutional reform of watershed management among the provinces within the YREB, so as to ensure that the clear water of Yangtze River will last for future generations. 1. The challenges faced to green development of the YREB Firstly, a unified and comprehensive legal system is still not in place for the river basin. Although certain provisions have been stipulated in view of the ecological protection and pollution prevention and control in river basins in some applicable laws and regulations, such as Water Law, Water Pollution Prevention Law, Water and Soil Conservation Law and Environmental Protection Law, some common provisions can’t solve various issues during the ecological construction and coordinated development of green industries in the YREB. Secondly, the green development must be further coordinated effectively within whole basin. The homogeneous industrial distribution is seriously in some areas along the Yangtze River. Moreover, the layout is also unreasonable for some sewage outlets, harbors, wharfs and intakes. The level of green basic public services varies greatly from region to region. Thirdly, it is necessary to further play the role of market mechanism in the green development of the YREB. Most of the funds are sourced from the general public budget of the central finance and local finance, which is not so market-based during fund raising. At present, it has not been linked with the projects related to ecological economy and green economic development, and the path has not been fully opened up to compensate for ecological loss with the economic development. Fourthly, the eco-compensation mechanism still lacks the legal regulation, and the scientific and long-term eco-compensation mechanism still needs to be improved continuously. It is difficult to smoothly implement the existing normative documents of basin eco-compensation due to their low level of legislative 1 effectiveness and poor rigid constraints. The eco-compensation ways are simplified, compensation fund is insufficient and the public participation is also insufficient. Fifthly, as an important means to solve the environmental issues within the river basin, the executive capacity of “river-chief system” is relatively insufficient. Many sectors can’t participate in it actively as they regard the river-chief system as the work of the water conservancy sector. It is failed to form the organizational structure for the river-chief office at county and township level, which can’t ensure the relevant work proceed smoothly. 2. Recommendations Recommendation1: Accelerate the Formulation of Strategies for Ecological Environment Protection Within the Yangtze River Economic Belt 1.1 Scientifically and Reasonably Determine the Target Index System Emphasis should be laid out in the report of the Nineteenth National Congress of the CPC on how the strategic vision for the next hundred years (2035 and 2050) will be developed. It should be made clear as to how we can define the Target Index System into policy that conforms to the ecological environment characteristics of the Yangtze River Economic Belt. We should adhere to the maxim of Harmonious Yangtze River, Clean Yangtze River, Healthy Yangtze River, Graceful Yangtze River, and Safe Yangtze River. These words were put forth in the Eco-environmental Protection Plan of the Yangtze River Economic Belt, and they have further highlighted the goal orientation of a harmonious relationship between rivers and lakes, clean water quality, a healthy ecosystem, beautiful urban and rural environments and controllable environmental risks. (1) The harmonious Yangtze River emphasizes the unison of rivers and lakes, people and water, adhering to the concept of water-based, fixed production and a water-based, fixed city. Therefore, we should break the barriers between water resources, water environment, and water ecology. We should take the rational utilization of regional water resources and the effective guarantee of ecological water quantity of rivers and lakes as the baseline measurement. Moreover, attention should be paid to whether the carrying capacity of water resources and the environment will not be surpassed. (2) A Clean Yangtze River emphasizes continuous improvement of water environment quality, and we should pay closer attention to the continuous improvement of "good water." At the same time, we need to look at the dramatic reduction of "poor water," and utilize a grade of sections better than Class III and inferior to Class
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